The digital tax will cost Canadians more than $1.1 billion a year

Digital tax will cost over $1.1B per year to Canadians

MISE À DAY

The digital business revenue bill could cost Canadian consumers more than $1.1 billion a year, according to the Montreal Economic Institute (IEDM).

The MEI study published Thursday indicates that the tax on digital services would imply a 3% surcharge on the income of companies working in the field of online services, which can bring in revenue $3.4 billion over five years in Ottawa.

The organization draws a parallel with France, which implemented a similar tax in 2019, estimates that a 1% to 3% increase in service fees online would cost between $1.1 billion and $3.3 billion that consumers will have to bear.

The Ottawa plan aims to make the web giants “pay their fair share”, according to a multilateral agreement on a minimum tax of 15%, whereas during the last five years, they had an average tax rate of 24%.

“Instead of going to more hollow in our pockets, the government would do better to lighten the regulatory burden, especially in a context where inflation is eating away at our purchasing power,” said Olivier Rancourt, economist at the MEI and author of the publication.< /p>

“The data doesn't lie: digital service companies are already paying more than the fair share set by the government. This tax proposal responds to a false problem,” added Mr. Rancourt.